It is no news that the outsourcing business has been growing steadily over the last few years. What is more, the Global Business Process Outsourcing Market is expected to grow by $40.16 billion during 2021-2025 according to the report produced by Reportlinker.com. This may explain why every time more and more IT companies are considering outsourcing. But, why is Latin America becoming so popular as a nearshoring destination for North American companies?
It is not just a matter of costs. North America has been facing a shortage of IT talents, due to increasing demand for highly trained developers that the internal market is not able to fulfill. In this aspect, Latin America has some of the best trained IT professionals worldwide. Just to mention some numbers, as of 2018, Brazil had more than 475,000 software developers, followed by Argentina, with over 114,000 software engineers1. Universities in the region produce highly trained Software Engineers, while the growth in the industry is providing their developers with the best experience and expertise.
Nearshoring IT operations to Latin America means companies in North America can reduce their operational costs, while still being in close contact with their outsourced staff. Latin America is in close proximity and shares a time zone with American countries, which is a great operational advantage in daily work: it reduces delays whenever there are issues to solve, and it eases communication. At the same time, countries such as Argentina have some of the best English levels worldwide, another great benefit to avoid glitches.
Another side worth considering is the legal aspect. Latin American companies are familiar with US and North American Intellectual Property laws, since they are in many ways similar to their own, and most of them have already worked with them in the past. Legal troubles can be a setback for an ongoing project, so having team members that understand how the system works and what precautions should be taken, will not only save time but also many headaches.
Latin America has been producing some of the best developers in the global market, and it does not show signs of slowing down. At Virtualmind we work hard to deliver the best possible IT services, teaming up with our clients and becoming a part of their teams. We believe that we are in a unique position to offer top-quality services, highly trained developers, and competitive costs for both well-established companies and entrepreneurs. Do you want to know more? Contact us!